By Kiran Jani
The start of 2024 was strong for Nifty50, with the index rallying to new highs. Subseuqnetly ofcourse, there was sharp profit booking in the second half, leading to a notable retracement from its all-time high. Over the last 14 months, Nifty50 has delivered a modest return of just 5.48%, reflecting a period of consolidation and sectoral divergence. Meanwhile, market-favourite paint stocks have remained clear underperformers, exhibiting sustained bearish momentum. Asian Paints and Berger Paints have faced significant drawdowns, posting negative returns of 34% and 19%, respectively.
Sources: Investing.com
The price action in both stocks suggests the possibility of a trend reversal, with technical indicators hinting at potential upside opportunities. Investors and Traders should closely monitor key support and resistance levels and breakout confirmations.
5 Stocks That Could Soar Again in 2025 1. Asian Paint Limited – Bullish Reversal pattern
Asian Paints has declined 32% since early 2024, correcting from ₹3,393 in September to a low of ₹2,208—its 2021 level. The stock has rebounded from strong long-term support at ₹2,200, signalling a potential trend reversal. Watch for breakout confirmation and bullish momentum indicators.
Key technical indicators supporting the Bullish Outlook:
- Falling wedge Pattern – The stock has formed a falling wedge, a classic bullish reversal pattern signalling a potential breakout.
- Volume Surge – Recent price and volume movements suggest increasing investor participation, reinforcing the bullish sentiment.
- RSI in Bullish Divergence —The 14-period RSI is trading into an extreme oversold zone but has also formed a bullish divergence.
Source: Investing.com
Outlook – Asian Paint
Asian Paints has been in a corrective phase, dropping from ₹3,393 to ₹2,200 over the past six months. However, forming a falling wedge pattern and bullish RSI divergence suggests a potential trend reversal. Multiple technical signals indicate an impending breakout, making this a stock a candidate for potential upside in the coming weeks.
2. Berger Paint Limited – Bullish Reversal pattern
Berger surged 43% from June 2024 before correcting from its ₹630 high in September. Subsequently it retested support near the same level. However, the daily chart now indicates a potential bullish reversal, supported by key technical indicators such as bullish RSI divergence,
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